topic Re: American Express APR increase in Credit Cards

American Express APR increase

Themanwhocan — Sat, 26 Aug 2017 19:29:26 GMT

I just received a USPS letter from American Express regarding my Blue Cash Everyday card. The letter states that they are increasing the APR starting October 21, 2017.

The new APR is 14.74% , and checking my latest statement my current APR is 11.24% , so this is a 3.5% increase.

They mention the rates and fees table in the credit card agreement will be changing to Prime+10.49% for purchases, and also for Balance Transfers. They did not list a range of APRs, so I wonder if everyone is being switched to that variable rate?

Later on in the letter they say they obtained my FICO score and used it in making this decision. My FICO score on Aug 16 was 771. Its not clear to me if the rate really was based on my FICO score, but I guess this means I can claim a free Experian credit report (making the best of a bad situation...)

So, what did you receive from American Express lately?

Re: American Express APR increase

Anonymous — Sat, 26 Aug 2017 19:33:30 GMT

I received a letter from them a few years ago, maybe 2015. They bumped my 9.24% Blue to 12.9% because they said they wanted to be more in line with compeititors....my letter did not indicate that FICO scores were used.

You've slowed down on your app sprees so it shouldn't be that.....

Re: American Express APR increase

Berk — Sun, 27 Aug 2017 15:29:50 GMT

Well, you're doing better than I am. I'm currently at 17.24% on Delta Sky Miles card. First time I've checked it in years. At one point it was down around 12% as well.

Re: American Express APR increase

K-in-Boston — Sun, 27 Aug 2017 16:12:13 GMT

Perhaps because you had an APR much lower than their current range they are just adjusting people in that scenario to the lowest of the current range? I hope that's not going to start happening with lenders since I have a few cards (notably Citi and Chase) where my x + prime is lower than the current lowest advertised x + prime.

Re: American Express APR increase

CreditMagic7 — Sun, 27 Aug 2017 17:00:37 GMT

Might consider that action less extreme or fortunate.

And so it begins? Bares watching who else also weighs in on barclays cousin.

http://ficoforums.myfico.com/t5/Credit-Cards/Amex-CLD/td-p/5034053

Re: American Express APR increase

wasCB14 — Sun, 27 Aug 2017 17:36:16 GMT

Practically speaking, APRs seem to come in two varieties these days:

A: We want to be an attractive financing option for you.

B: We want to milk you for being disorganized and/or short of cash.

Maybe they figure that as long as they are offering a "B" APR, they might as well make some more money.

Re: American Express APR increase

CreditCuriosity — Sun, 27 Aug 2017 19:13:12 GMT

Hop on chat and ask for an apr reduction.. I have had good luck with APR reductions on chat although they have certainly pulled back.. My ED card is way below published rate. Hopefully I am not getting rate hike. I remember a few years ago this happened I believe on the same card for the masses as they claimed their rates were below other similar card rate from other lenders or something along those lines and people got their apr's back down over time by requests.

Re: American Express APR increase

kdm31091 — Sun, 27 Aug 2017 18:47:40 GMT

Amex was typically very generous with APR reductions. It seems they have been tightening up as of late. It sucks to see a rate go up, but my guess is they will start lining people up with the published rates more.

Re: American Express APR increase

Themanwhocan — Sun, 27 Aug 2017 23:28:39 GMT

@kdm31091 wrote:
Amex was typically very generous with APR reductions. It seems they have been tightening up as of late. It sucks to see a rate go up, but my guess is they will start lining people up with the published rates more.

Well, so far it seems like i'm the only one posting about a recent APR increase. Perhaps they don't like that I don't use that card very much.

Re: American Express APR increase

Anonymous — Mon, 28 Aug 2017 18:22:49 GMT

I honestly don't even know what my APR is, but I'm sure it's worse than what they're raising yours to. I would definitely hop on the chat to request a reduction, and ask what the reasoning for raising it is.

Re: American Express APR increase

Anonymous — Mon, 28 Aug 2017 23:22:55 GMT

This might have something to do with the Feds raising the interest rates for the second time this year.

Keep in mind, as rates continue to trend upwards, savers will start to earn a little more for keeping their money in the bank. Meanwhile, carrying a balance on credit cards and taking out loans will get more expensive. The rate on a 30-year mortgage, for instance, has floated higher but is still at a historical low at 3.9%. I was lucky enough to get 3.25% on mine

Re: American Express APR increase

blondy250 — Tue, 29 Aug 2017 07:39:22 GMT

Like others have mentioned probably a combination of the Fed rate hikes and them using the Fed rate hikes to juice the rate. Doesn't concern me haven't paid any credit card interest in a decade at least.

Re: American Express APR increase

Anonymous — Tue, 29 Aug 2017 13:57:05 GMT

@blondy250 wrote:
Like others have mentioned probably a combination of the Fed rate hikes and them using the Fed rate hikes to juice the rate. Doesn't concern me haven't paid any credit card interest in a decade at least.

Umm, great stats!! want to be like you one day.

Re: American Express APR increase

sunkissed — Tue, 29 Aug 2017 22:51:20 GMT

Themanwhocan, I just got a letter from Amex raising the rate on my SPG card. My APR had been 12.49%. They raised it to 17.99%. Similar language: “We are making these changes because your current APRs are lower than average APRs on similar cards in the marketplace”. On the second page it also states: “When determining your new APRs, we evaluated average APRs for people with similar credit profiles and similar cards in the marketplace.”

I have never paid interest on this card, but I am still unhappy about the increase. It is a big jump.

Re: American Express APR increase

Themanwhocan — Wed, 30 Aug 2017 13:25:47 GMT

@sunkissed wrote:
Themanwhocan, I just got a letter from Amex raising the rate on my SPG card. My APR had been 12.49%. They raised it to 17.99%. Similar language: “We are making these changes because your current APRs are lower than average APRs on similar cards in the marketplace”. On the second page it also states: “When determining your new APRs, we evaluated average APRs for people with similar credit profiles and similar cards in the marketplace.”

I have never paid interest on this card, but I am still unhappy about the increase. It is a big jump.

Thanks. At least I'm not the only one.

Misery loves company, you know...

Re: American Express APR increase

370Z — Mon, 04 Sep 2017 21:17:03 GMT

This has also happened in the past. In 2013, I opened up a Hilton card at 15.24%, the lowest APR at the time. In early 2014, the APR was reduced to 12.24% via chat. In 2015, Amex raised the rate to 13.99% with the same "market rate" spiel. No APR reductions have been successful since then. My FICO scores were in the high 700s at the time with low inquiries and utilization.

Re: American Express APR increase

Anonymous — Tue, 05 Sep 2017 02:50:23 GMT

terrible. but i am less surprised since they did just release that new plan it feature.....

Re: American Express APR increase

Themanwhocan — Tue, 26 Sep 2017 22:00:49 GMT

@Themanwhocan wrote:
@sunkissed wrote:
Themanwhocan, I just got a letter from Amex raising the rate on my SPG card. My APR had been 12.49%. They raised it to 17.99%. Similar language: “We are making these changes because your current APRs are lower than average APRs on similar cards in the marketplace”. On the second page it also states: “When determining your new APRs, we evaluated average APRs for people with similar credit profiles and similar cards in the marketplace.”

I have never paid interest on this card, but I am still unhappy about the increase. It is a big jump.
Thanks. At least I'm not the only one.

Misery loves company, you know...

Well, it doesn't hurt to be lucky... I just received another letter from American Express. This one says that due to a technical issue, incorrect APRs were printed in that letter. It goes on to say that my APR will not be changing at this time. And they included a 12 page correct card member agreement, and that does state my APR is 11.24%

Hopefully your APR increase was due to a technical issue as well.

Re: American Express APR increase

sunkissed — Tue, 26 Sep 2017 22:12:55 GMT

@Themanwhocan wrote:
@Themanwhocan wrote:
@sunkissed wrote:
Themanwhocan, I just got a letter from Amex raising the rate on my SPG card. My APR had been 12.49%. They raised it to 17.99%. Similar language: “We are making these changes because your current APRs are lower than average APRs on similar cards in the marketplace”. On the second page it also states: “When determining your new APRs, we evaluated average APRs for people with similar credit profiles and similar cards in the marketplace.”

I have never paid interest on this card, but I am still unhappy about the increase. It is a big jump.
Thanks. At least I'm not the only one.

Misery loves company, you know...
Well, it doesn't hurt to be lucky... I just received another letter from American Express. This one says that due to a technical issue, incorrect APRs were printed in that letter. It goes on to say that my APR will not be changing at this time. And they included a 12 page correct card member agreement, and that does state my APR is 11.24%

Hopefully your APR increase was due to a technical issue as well.

I did get the same apology letter from Amex today! Nine double-sided pages I haven't had time to sift through yet. But I did read the part where my rate will not increase after all - citing a "technical issue".

Re: American Express APR increase

pipeguy — Wed, 27 Sep 2017 00:18:41 GMT

Just a point on Fed Rate increases for 2017, there have been 3, each was .25% (1/4 x 3 = .75 or 3/4's of 1%). Most of my cards have adjusted up .25 % each time, NONE have gone up more, certainly not 3 to 5 percent. IMO this is a profit grab, perhaps based on tightening risk, but it's NOT the fault of the Federal Reserve.